Aboriginal Affairs Minister Leslie Williams said Indigenous languages were a "unique and valuable part of our heritage" and legislation could benefit the community.

"We know that the Aboriginal Protection Board removed Aboriginal children from their families for speaking Aboriginal language," she said.

"Consequently, mothers could not pass on their language to their children, fathers could not teach their children language and grandparents could not talk to their grandchildren in language.

"If legislation can so effectively take away Aboriginal language, so too it can restore and revive Aboriginal language.

"We know that Aboriginal people who speak their language are healthier, Aboriginal children learning a language do better at school and that language renewal strengthens communities."

Among those who travelled from across the state to hear the announcement in Sydney today was Diane McNaboe, from the North West Wiradjuri Language and Culture Nest in Dubbo.

Ms McNaboe, who has more than 2,000 students enrolled in language classes across 19 schools in the Dubbo, Wellington, Mudgee, Peak Hill, Narromine, Trangie and Gilgandra areas, said the legislation was significant.

"It's a big thing, it's like acknowledging that we exist and all these different language groups exist and nations within NSW," she said.

"It'd be good to see it happen right across Australia, but NSW leading the way is really good."

'Good for the community, good for our identity'

"It gives power to Aboriginal communities to do the programs that they've always wanted and it acknowledges that Aboriginal languages have always been here and that they now take their rightful place as Australian languages," Ms Riley said.